The AI Build Out: Built on Bonds.
AI's accelerated adoption is driving a large-scale digital infrastructure buildout, particularly in data centers, along with rapidly rising capital needs. As demand outpaces project completions, borrowers are relying on an increasingly diverse range of funding sources.
AI-related financing now spans investment-grade credit, high yield, leveraged loans, securitized, and private markets. Activity has been robust across sectors, with AI-linked supply already surpassing prior years and newer segments gaining meaningful market share.
As AI accelerates technological innovation, it's also reshaping fixed income market and introducing new risks. Sector lines continue to blur as a spectrum of features are embedded across deals, such as amortization, tenant/lease structures, and construction risk.
With issuance likely to remain heavy beyond earnings season, AI is set to further test the capacity and flexibility of credit markets. Rather than operating within sector silos, investors should adopt a more flexible, relative value-driven approach supported by cross-team collaboration and disciplined risk management.
AI-Related Issuance Will Likely Remain Heavy and Continue to Diversify
Sources: Bloomberg, J.P. Morgan Research and Morgan Stanley Research as of 4/24/26. Supply prior to 2025 sourced from Bloomberg and J.P. Morgan Research. Supply for 2025 and YTD sourced through Morgan Stanley Research from Dealogic, Pitchbook | LCD, CreditFlow, and TREPP. The views contained in this report are those of Income Research + Management (“IR+M”) and are based on information obtained by IR+M from sources that are believed to be reliable but IR+M makes no guarantee as to the accuracy or completeness of the underlying third-party data used to form IR+M’s views and opinions. This report is for informational purposes only and is not intended to provide specific advice, recommendations, or projected returns for any particular IR+M product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from Income Research + Management. “Bloomberg®” and Bloomberg Indices are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the index (collectively, “Bloomberg”) and have been licensed for use for certain purposes by IR+M. Bloomberg is not affiliated with IR+M, and Bloomberg does not approve, endorse, review, or recommend the products described herein. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to any IR+M product.
